Singareni Collieries Co Ltd (SCCL), India's second biggest
coal miner, will be completely switching over to the new price mechanism based
on gross calorific value (GCV) in the next three months, which would result in
some price increases for certain higher-grade coal.
The new mechanism will enable SCCL to get better price for
higher-quality coal and relatively lesser rate for lower-grade coal. “It will
be value for money for our consumers. For us, it will mean better price for
better grade,” said Mr S. Narsing Rao, the company's Chairman and Managing
Director.
Till then, SCCL, which began the process of switching over
to the new price mechanism from January 1, will keep the new prices on par with
the earlier structure so that there is no revenue and price impact either for
the miner or for its consumers.
Its existing prices range from the lowest (F-grade) of Rs 690/MT
to about Rs 2,500/MT. It is investing about Rs 1 crore to set up the required
facility to grade the coal as per its GCV to fix a price tag. The facility,
that includes a laboratory for analysis, will be ready by the end of this
fiscal.
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